Tender documents exist so that buyers can communicate the projects they need high-quality workers for, and the evaluations they will use to find them.
Misreading tender documents can lead to your disqualification or the submission of a weaker bid than your competition. Neither of which is a good outcome, after you’ve put in the work to form your bid.
Tender documents can seem intimidating at first, but with a proper understanding of how you should read them, you’ll find they are useful pieces of information that can improve your chances of winning more work.
What do tender documents include?
A tender can include many different types of documents and specific terms, sometimes to a near-overwhelming point, but they will almost always feature six main sections:
- Introduction
- Scope of Works
- Evaluation Criteria
- Schedules
- Pricing
- Policies and Conditions
These categories might be arranged differently, have alternative names, or feature multiple documentation. Let’s break these down a bit more:
Introduction
The tender will often begin with key information about the buyer and the work being requested. This can include an outline of the process, a timeline of key dates, and other relevant details. It may also provide a quick overview of the buyer organisation, and how this work packet fits into the overall project.
What’s important in this section:
Due dates and submission details, as you need to be sure you have enough time to create a high-quality bid. Submitting before the deadline is essential.
Scope of Works
Also sometimes referred to as ‘tender specifications’, this section will feature a detailed description of the project. The main objectives, a breakdown of the services to be supplied, and operational requirements of the job will also be listed here. This section may even get as specific as the quantity of products required, the length of the contract, and due dates (if relevant).
What’s important in this section:
This section is the key area that will indicate whether this tender is right for you. Read the requirements carefully to ensure you can meet the needs of the buyer. You’ll want to understand what challenges they’re facing, why they require your services, and whether or not you can deliver. If you can’t, allocate your time and resources to a different tender, and always let the buyer know why you will not be submitting a bid.
Evaluation Criteria
This section is more common in government tenders due to the guidelines public sector organisations must meet around transparency and fairness. Evaluation methods can use a scoring scale or weighted percentages to measure and prioritise criteria to make an unbiased decision. The evaluation criteria align with categories in the tender schedule, and will often feature:
- Capability
- Capacity
- Qualifications
- Experience
- Understanding of Requirements
- Tendered Pricing
What’s important in this section:
The criterion that is weighted with the highest score is what the buyer has deemed most important. Focus on these sections, exemplifying how your company’s strengths align.
Tender Schedules
Schedules can vary depending on the nature of the work. For example, construction tenders may also require design documents or health and safety procedures. Schedules are commonly Q&A style, where your answers are entered into the buyer’s template. They can also be a numbered list of questions, which allows for a more freeform response.
What’s important in this section:
Compliance. Answer every question and provide all the information requested to avoid disqualification. Refer to the evaluation criteria and provide comprehensive responses. Answers should be clear and concise.
Pricing Schedules
Your quote for the project will often be at a fixed rate, with price ranges and variations, or with an itemised breakdown for each aspect of the project.
What’s important in this section:
Always remember that tenders aren’t won solely on price. Never undersell yourself, but research your competitors to ensure your price is in line with the market. Great value for money is the key here, not the lowest bid.
Policies and Conditions
This section will often include:
- Terms and Conditions
- Code of Conduct
- Privacy and Confidentiality
- Conflict of Interest Declarations
- Proposed Contract
These documents may be included as appendices or in one of the above sections.
How do I read a tender document correctly?
Navigating a tender document effectively can be the difference between winning or losing work. Here are a few tips to make sure you are best-positioned to submit a great bid:
- Read the introduction carefully to really understand the project’s objectives and scope. This will save you a lot of time, because you will know whether or not this tender is even right for you, and you can begin to formulate how you might best respond.
- Tender documents can be big; break the document into smaller sections and create tasks for their responses. Staying organised is important when preparing a tender bid, and this is a great method to make sure you don’t miss any crucial information.
- Pay attention to technical specs, as this is the best way to really understand what the buyer wants.
- The evaluation criteria are your best insight into how the buyer will assess your bid. Tailor your bid to them, and you’ll increase your chances of winning the work.
- Pay close attention to the terms and conditions and seek legal advice to fully understand the implications if required.
- Always ask questions if you come across any ambiguities or need further clarification. E1, for example, make it easy for you to reach out to the buyer.
- Always double-check your submission before sending your bid. You’ll want to ensure you have included all the necessary documents and that there are no spelling or formatting errors (as these can lead to disqualification).
How do I create a winning tender?
There are a few things that you can do to improve your proposal’s chances of winning. At E1, we had $321B worth of tenders listed in 2024, so we’ve seen a lot of buyer requests, and here are some of the things we’ve noticed about the winning bids:
- A tailored response to what the client needs greatly improves your chances of winning. Go beyond the technical requirements to solve all of the elements of the client’s request.
- Professionalism and clarity are vital, as well-structured proposals that avoid errors and ambiguities are more successful.
- The more you tender, the better you get at it. Your time is not wasted, even on lost bids, as it makes you more prepared for the next (potentially winning) one.
- Create a proofreading checklist and have more than one team member engaged in your bid review.
- Communicating your value proposition well is vital. Your approach and the benefits you bring to the project, including unique solutions and long-term advantages, are key.
The most successful bids are the ones that clearly understand what the client needs. The better your services align with client objectives, the higher your chance of winning.
What are the biggest challenges when bidding on a tender?
Tenders can sometimes have tight deadlines, ambiguous requirements and an overwhelming amount of documentation to sort through.
All of these things can affect the quality of your submission, leading to lost work. Knowing how to solve them before submitting your bid is essential, and always remember that resilience and adaptability are necessary to create the best quality submission.
Collaboration and communication ensure a true understanding of the direction for the project. Meticulous planning and preparation make for more competitive responses, and if in doubt, ask. A few questions upfront can save you from going down an irrelevant rabbit-hole of information that will provide no value to the buyer, or your bid.
Where can I find construction tenders?
E1 features over 900 of the top builders in Australia with tenders supplied directly by the Head Builder. For Head Builders, E1 helps derisk and speed up tender send-outs. Tenders can be uploaded and locked or given full access depending on the job and privacy you want. Subbies can easily see and bid on projects that match your trade, location, and capacity. With 22,334 tenders listed in 2024 alone, E1 is the industry standard for construction tenders.
Alexander
Green
General Manager - Subcontractors
